Municipality of the District of Chester

Transcription

1 Municipality of the District of Chester

2 Procurement Policy (P-04) Purpose and Objectives Low and High Value Procurement Directives Alternative Procurement Tender Types Submitting Bid Responses Bid Openings Evaluation and Awards

3 Ensure Best Value in a manner that is: Transparent Accessible Equitable Fair Open Consistent

4 Encourage competition Innovative ideas/solutions Sustainable decisions Equal opportunity Accountability

5 Requires at least three quotations Recommend award to Best Value Goods $25,000 or less Services $50,000 or less Facilities $50,000 or less Construction $100,000 or less May choose to publicly tender CAO authorized to award supplier when budgeted expenditure Report to Council for all expenditures over $10,000 Local preference policy currently under review

6 Purchase price + life cycle cost considerations Maintenance Energy consumption Replacement costs Warranties Useful life Environmental and social considerations Delivery Servicing Ability for supplier to meet other criteria outlined in tender documents

7 Required for: Any expenditure which falls outside low value procurement Any unbudgeted expenditure Anything exceeding approved budget allocation

8 Urgent or special circumstances Cannot be used to avoid competition Cannot be used to discriminate against specific suppliers Must be documented by staff and approved by CAO Need to provide rationale Low Value consult with CAO for process High Value consult with council for approval and means to proceed

9 Different types of tendering depending on purpose Invitation of bids for a project Seeking suppliers for goods or services Request for Quotation Request for Standing Offer Request for Construction Request for Expression of Interest Request for Proposal

10 When it is used When the minimum criteria or requirements are clearly defined Examples: specialized equipment, new vehicle, office furniture, equipment for public works Evaluation Usually based on lowest price that meets the specifications Does not normally (but can) include evaluation criteria Commitment Once issued, MODC is committed to purchasing

11 When it is used For construction, demolition, remediation, repair, or renovation work Examples: Buildings, structures, roads, bridges, engineering, architectural work Does not normally include professional consulting services related to the construction (e.g. engineering/design work) Evaluation Usually contains a bid form along with a separate set of terms and conditions for the project Predefined criteria Successful bid based on evaluation criteria in bid document Commitment Once issued, MODC is committed to purchasing provided responses meet criteria, including budget

12 When it is used Commonly used goods and/or services Examples: professional services such as accounting or engineering, legal services, trades such as carpentry, heavy equipment, Banking Services, Snow removal etc. Evaluation Usually based on the offer that provides the best value May include evaluation criteria Commitment MODC is committed to issuing standing offer once RFP is released

13 When it is used When the solution is not known, responses seek proposals for solutions to a problem or task Looking for possible ways to approach a problem or proposed ways to do something Only a first step in procurement shortlisted firms invited to respond to an RFP Examples: Determining who might be interested in purchasing or leasing a property, determining how consultants would propose to best undertake a project Can be used to help develop the scope of work for a project Evaluation Pricing not normally a key consideration in REI until RFP stage Commitment Lower level of commitment Looking for potential interest Trying to determine feasibility

14 When it is used When a supplier is invited to propose solutions or possible approaches to meet an objective or provide a service Often used in situations where there is more than one possible way to undertake the project or innovative solutions are desired Evaluation Bidders required to submit detailed proposals that outline their proposed approach to the project Successful bidder based on the effectiveness, value, and price Evaluation criteria and weighting are clearly outlined Commitment Lower level of commitment Awarding depends on best value and ability to meet objectives Often requires further negotiation RFP and bid documents form part of the contract

15 Municipal Website Lighthouse Now (Progress) and/or South Shore Breaker Depends on timing Provincial Procurement Site TONS notification from Province Open to all individuals and businesses All public sector bids Can choose categories of goods and/or services

16 Every 5 years Every 3 years Every 2 years Annually Animal Control Auditing Services Engineering Services Sewer Repair Waste Collection Wood Grinding/Chipping Derelict Vehicle Collection Flagging HHW Services Printing Services Snow Removal Vehicle Repair Banking Services Surveying Services Legal Services (at the discretion of Council) Paper Shredding Salting Courier Services Heating and Air Conditioning Heavy Equipment Services Trail Work

17 Document Fees Normally free, but can be a nominal cost for cost of reproduction Deliverables/Format Read Tender documents CAREFULLY Be sure to note all specifications May require electronic documentation We often have template available for RFQs, Tenders, and RFPs for consistency

18 Bid Security 10% of contract price, outlined in tender Required at time of submitting proposal Refundable within timeframe in RFP Refunded to Successful Bidder upon execution of Agreement and other criteria such as insurance, contract security Bid bond, certified cheque or money order may be permitted (specified in tender) Done to protect MODC s interest Contract Security Performance bond & labour/material bond Ensures project gets done on schedule, according to specs, suppliers get paid Normally as a bond Irrevocable line of credit sometimes required for service based contracts Reserved for large and or complex projects ( > $100,000)

19 Bid Forms Pricing per unit or lump sum References Experience & Equipment Insurance For services, construction may require liability insurance Amount may vary depending on project May also require additional insurance (i.e. auto, pollution) Certificate of insurance required prior to execution of contract, not at time of bid May request verification that you can get insurance

20 Safety Certification Mainly for Construction related projects or services Extent of Program depends on number of employees Letter of Good Standing from a WCB approved association or provide proof that meet OHS Act and accompanying regulations Must become familiar with MODC s policy May be required to follow the more stringent policy Worker s Compensation Done for the protection of workers Mainly for Construction-related project and/or trades or Services May require clearance from Worker s Compensation Board

21 Ensure bids are clear and legible Be clear on what you are saying you will do Ensure all costs are included Check to make sure you have included any necessary signatures/seal, authorization Addendums to the Tender may be issued to modify or clarify a specification or timeline All those who obtained a copy of the tender documents are provided with a copy of the addendum Addenda must be acknowledged in bid submission Bids may include a site visit prior to submitting bid Mandatory vs Optional Can request a site visit when not included, to ensure familiarity with existing conditions Can often generate a set of questions Q&A will form part of an addenda

22 May request proof of certifications to ensure meet trade requirements, as defined Apprentice Ship and Trades Qualifications Act and accompanying regulations Time Considerations Be sure to pay attention to submission deadline and any scheduling requirements Deadlines are normally non-negotiable (except for RFPs) May incur penalties or disqualification if timelines are not followed May reject if tender submissions not met We try are best to make sure the right person or company is doing the job

23 Bid openings are public May receive list of bidders after bid opening Bid prices are normally read out at opening Price may not be only criteria, therefore lowest bid may not always be the successful proposal

24 Subject to evaluation before awarding Low Value Procurement may be approved by CAO High Value Procurement must be approved by Council Winning bidder and contract award amount posted on NS procurement site for high value procurement Bidder list Name of winning Bidder Award Price Supplier Debriefing Upon request, staff conducts debriefing session How proposal scored against criteria Obtain comments on own bid Feedback on how future bids may be improved Not compared to other bids, nor is info on other bids provided

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